Correlation Between Slj Global and Champion Pacific
Can any of the company-specific risk be diversified away by investing in both Slj Global and Champion Pacific at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Slj Global and Champion Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slj Global Tbk and Champion Pacific Indonesia, you can compare the effects of market volatilities on Slj Global and Champion Pacific and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Slj Global with a short position of Champion Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slj Global and Champion Pacific.
Diversification Opportunities for Slj Global and Champion Pacific
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slj and Champion is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Slj Global Tbk and Champion Pacific Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Pacific Ind and Slj Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Slj Global Tbk are associated (or correlated) with Champion Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Pacific Ind has no effect on the direction of Slj Global i.e., Slj Global and Champion Pacific go up and down completely randomly.
Pair Corralation between Slj Global and Champion Pacific
Assuming the 90 days trading horizon Slj Global Tbk is expected to generate 5.44 times more return on investment than Champion Pacific. However, Slj Global is 5.44 times more volatile than Champion Pacific Indonesia. It trades about 0.07 of its potential returns per unit of risk. Champion Pacific Indonesia is currently generating about 0.0 per unit of risk. If you would invest 7,700 in Slj Global Tbk on November 27, 2024 and sell it today you would earn a total of 400.00 from holding Slj Global Tbk or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slj Global Tbk vs. Champion Pacific Indonesia
Performance |
| Timeline |
| Slj Global Tbk |
| Champion Pacific Ind |
Slj Global and Champion Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slj Global and Champion Pacific
The main advantage of trading using opposite Slj Global and Champion Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slj Global position performs unexpectedly, Champion Pacific can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Champion Pacific will offset losses from the drop in Champion Pacific's long position.| Slj Global vs. Solusi Bangun Indonesia | Slj Global vs. Bakrie Sumatera Plantations | Slj Global vs. Total Bangun Persada | Slj Global vs. Berlian Laju Tanker |
| Champion Pacific vs. Intanwijaya Internasional Tbk | Champion Pacific vs. Asiaplast Industries Tbk | Champion Pacific vs. Trias Sentosa Tbk | Champion Pacific vs. Lotte Chemical Titan |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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